There are several different types of insurance for a renovation company. This is something that is important to consider when a homeowner is gathering bids from contractors on a renovation project. One of the first questions one should ask a potential contractor is whether or not they have renovation contractor’s insurance. It would even be prudent to ask to see proof that they have indeed purchased and hold valid insurance.
That a contractor have his or her own insurance is vitally important to the homeowner for this reason. Sometimes things go wrong. Either someone on the contracting team becomes hurt on the homeowner’s property or maybe some of the contractor’s equipment is stolen from the homeowner’s property. In these cases the homeowner could be liable for the costs associated with that injury or theft. Assuring one’s self by checking that the contractor has valid insurance is the only way to avoid liability for such incidents.
In addition to on-site injury and theft, the different types of insurance for a renovation company cover things like equipment breakdown, loss of income, the transportation of materials and manpower to and from the site, pollution liability, rented equipment, and errors and omissions regarding design and build.
Specialized types of insurance for a renovation company are available as well. Insurance that has been tailored to the specific needs and risks of the sub-trades like mechanical, electrical, and masonry is important as each of these trades have differing risk profiles.
Possibly one of the most vital types of insurance for a renovation company is the insurance that is associated with the plans that they rely upon to renovate the home correctly. In a larger, more extensive renovation architect’s or engineer’s plans and drawings come into play. The architect carries insurance as well, because an architect’s drawings are always under scrutiny. The work of architects and engineers is constantly under the spotlight. The renovation contractor relies upon the fact in the case of these larger, more complicated renovation jobs that the architect or engineer that drew up the plans carries insurance as well. Mistakes in the final renovation (that were a result of following the plans correctly) fall back on this insurance.